Sharia banking: Germany to see its first Islamic Bank

AFP Photo / Khaled Desouki
Turkey's Kuveyt Turk investment fund, which operates under the principles of Islamic sharia law, plans to open its first German branch in October.

The first branch in Germany will be opened in Frankfurt with the assistance of Ernst & Young and the Norton Rose law firm. More branches are due to open in the near future in other German cities, particularly Berlin, the Financial Times Deutschland reported.

Sharia law bans a fixed or floating payment or acceptance of specific interest or fees on loans. The bank also buys houses and then resells it to clients for a higher price. Such banks already operate in Britain, where the Muslim community nears 3 million people.

Germany has one of the largest Muslim population in Western Europe. About 3.5 million Muslims live in Germany with 70% of them originally from Turkey.